2017 scaling globally - navigating china money

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Scaling Globally: Navigating China Money Edith Yeung | @edithyeung

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/ Edith Yeung is the Head of 500 Startups Greater China and 500 Startups Mobile Collective. She has invested in over 35 mobile, VR, AR, AI and machine learning startups in last two years. Before 500, Edith was the VP of Marketing & Business Development for Dolphin Browser. Dolphin Browser is a Sequoia-backed mobile browser with over 150M installs worldwide. She also founded RightVentures - seed stage investment firm focusing on mobile and consumer internet companies. Prior, she led many operational roles at Oracle, Siebel, AT&T, Symantec, Telstra, Cisco, Autodesk, etc.

Edith Yeung | @edithyeung | edith.co

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/ / Since July 2010 1,540+ Portfolio Companies

500 Startups Is the Most Active Seed Investor in the World1

$275M in AUM2

The various geographies highlighted in the map result from investments we have made across all 500 Startups funds. 1.  CB Insight https://www.cbinsights.com/blog/2015-early-stage-investors/ 2.  Approximated as of 5/31/2016 and includes the following 500 Startups funds: (a) 500 Startups, L.P. and 500 Startups-A, L.P. (together, “Fund I”), (b) 500 Startups II, L.P. and 500 Startups II-A, L.P. (together,

“Fund II”), (c) 500 Startups III, L.P. and 500 Startups III-A, L.P. (together, “Fund III”), (d) 500 Startups IV, L.P. and 500 Startups IV-A, L.P. (together, “Fund IV”), (e) 500 Startups Annex Fund, 3.  L.P. (“Annex”), (f) 500 Luchadores, L.P. (“Luchadores”), (g) 500 Durians, L.P. (“Durians”), (h) 500 Mobile Collective, L.P. (“Mobile Collective”), (i) 500 Kimchi, L.P. (“Kimchi”), (j) 500 TukTuks, L.P.

(“TukTuks”), (k) 500 Startups JP, L.P. ("Japan”), (l) 500 Startups Istanbul, L.P. ("Istanbul”), (m) 500 Nordics, L.P. (“Nordics”), (n) 500 Falcons, L.P. (“Falcons”), (o) 500 Kulfi, L.P. (“India”), and (p) 500 Fintech, L.P. (“Fintech”), and (q) 500 Startups Canada, L.P. (“Canada”).

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/ / 3 Unicorns ($1B+ in valuation)

Companies are a select sampling of investments across 500 Startups funds and will not be held in Fund IV. While Fund IV has not invested in the rounds of financing shown on this slide, at least one 500 Startups fund has invested in one or more rounds of financing for each of these companies. The valuations listed herein are estimated as at March 31, 2016 based on 500 Startups Valuation Policy as set out in the Appendix to this presentation. These numbers provide a snapshot of estimated valuation as at a particular time and may change. Further detail with regard to financing of companies listed on this slide can be found on Crunchbase. A full list of 500 Startups companies is available upon request.

30+ Centaurs ($100M ~ $999M in valuation) * indicates companies that have already exited

3 Unicorns ($1B+ in valuation) and 30+ Centaurs ($100M-999M in valuation)

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China by the Numbers

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$231 Billion Government-backed venture funds raised

Source: http://origin.www.uscc.gov/sites/default/files/Research/Chinese_Investment_in_the_United_States_Rhodium.pdf

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$140 Billion In 2016, China became the second-largest global

acquirers behind the US with US$140B in completed M&A transactions

Source: http://www.usmergers.whitecase.com/executive-summary

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48 Deals Baidu, Alibaba, Tencent and JD.com invested

$5.6B in 48 US tech deals in the past 48 months

Source: http://www.cnbc.com/2017/03/08/chinas-tech-giants-are-pouring-billions-into-us-start-ups.html

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$8.6 Billion Supercell, Maker of Clash of Clans

was acquired by Tencent for $8.6 Billion.

Source: http://www.cnbc.com/2017/03/08/chinas-tech-giants-are-pouring-billions-into-us-start-ups.html

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$798.5 Million Alibaba invested in Magic Leap

Source: https://www.cbinsights.com/blog/china-investment-us-tech-startups/

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How to Navigate the China Funding Sea

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/ Who are the most active early stages Chinese Investors?

Edith Yeung | @edithyeung | edith.co Source: Zero2IPO report

1.  Zhen Fund 2.  Innovation Works 3.  K2VC 4.  Legal Star Capital 5.  Longling Capital 6.  Angel Plus 7.  Innovation Angel Funds 8.  Ameba Capital 9.  Unity Ventures 10. Plum Angel Ventures Capital

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/ 2017 China Investment & M&A Focus & Predictions

Edith Yeung | @edithyeung | edith.co Source: CBInsights

•  Artificial Intelligence •  Machine Learning •  Deep Learning •  Robotics •  Autonomous Car •  FinTech •  Healthcare &

Genomics

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/ Who are the most active technology/entertainment acquirers?

Edith Yeung | @edithyeung | edith.co Source: CBInsights

•  Alibaba's Ant Financial acquires MoneyGram for $880M

•  Tencent acquires Supercell for $8.6B

•  HNA Group acquires Ingram Micro for $6.07B

•  Wanda acquires Legendary Entertainment for $3.5B

•  Haier acquires GE Appliance Business for $5.6B

•  Miteno acquires Media.net for $900M

•  Orient Hontai Capital acquires AppLovin for $1.4B

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7 Questions You Must Ask Your China Investors

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/ 1. Do you really need a go-to China market strategy?


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/ 2. Does this investor have true domain knowledge in China?


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/ 3. Have they previously invested in US startups?


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4. Have they previously invested in Chinese startups in your vertical?

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/ 5. What is their distribution & hiring strategies for you in China?


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/ 6. What is their decision-making process?


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/ 7. Do they have the US dollar?


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China is Calling

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/ You can find me at:

•  Email [email protected] •  Twitter @edithyeung •  Newsletter http://www.edith.co/#newsletter •  Slide https://www.slideshare.net/EdithYeung


2017 scaling globally - navigating china money

Investor Relations